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Lille Tisages
Essay specific features
Written by:
Amanda T
Date added:
November 14, 2016
Level:
University
Grade:
A
No of pages / words:
6 / 1553
Was viewed:
3504 times
Rating of current essay:
Essay content:
In 2002 the market share dropped to 30%, and then continued to drop in 2003 to 20%. See exhibit 1. This is believed to have been caused by Lille Tissages, S.A. raising the price of Item 345 from FF15.00/m to FF20.00/m in 2002, while the competitors kept their price atFF15.00/m.
The reason for raising the price in 2002 was the need to bring the profit per meter up to that of other items on the line...
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Although the company was in a strong position financially, it would require considerable capital in the next few years to finance a recently approved long-term modernization and expansion program.1
Facing stiff competition the senior management needed to reconsider the pricing plan for Item 345. So in early 2004 they held a meeting to decide in which direction to go...
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